Manchester, N.H.-based Catholic Medical Center, which saw its credit rating downgraded by Moody's in late August, has now also been downgraded by S&P.
The agency lowered the system's rating from "BBB+" to "BBB-" Sept. 6 amid declining operating margins and uncertain strategic direction, S&P said in the note.
"The two-notch downgrade reflects a rapid decline in operating margins, particularly in the first nine months of fiscal 2023, coupled with a trend of diminishing reserves that we believe no longer offsets the magnitude of the losses," said Marc Arcas, S&P Global Ratings credit analyst.
Catholic Medical Center is the largest hospital in an affiliation of three New Hampshire facilities operating under the banner of GraniteOne Health. That affiliation is to be dissolved pending regulatory approval.